1.1                          A bill for an act 
  1.2             relating to insurance; making various changes in 
  1.3             enforcement of mandatory automobile insurance; 
  1.4             amending Minnesota Statutes 2002, sections 169.791, 
  1.5             subdivision 1; 169.796, by adding a subdivision; 
  1.6             169.797, subdivision 4a; 169.798, subdivision 1, by 
  1.7             adding a subdivision; 171.20, subdivision 4; repealing 
  1.8             Minnesota Statutes 2002, sections 169.792, subdivision 
  1.9             12; 169.794; 169.799; Minnesota Rules, parts 
  1.10            7413.0400; 7413.0500. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2002, section 169.791, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [TERMS DEFINED.] (a) For purposes of this 
  1.15  section and sections 169.792 to ~~169.799~~ 169.798, the following 
  1.16  terms have the meanings given. 
  1.17     (b) "Commissioner" means the commissioner of public safety. 
  1.18     (c) "District court administrator" or "court administrator" 
  1.19  means the district court administrator or a deputy district 
  1.20  court administrator of the district court that has jurisdiction 
  1.21  of a violation of this section.  
  1.22     (d) "Insurance identification card" means a card issued by 
  1.23  an obligor to an insured stating that security as required by 
  1.24  section 65B.48 has been provided for the insured's vehicle.  
  1.25     (e) "Law enforcement agency" means the law enforcement 
  1.26  agency that employed the peace officer who demanded proof of 
  1.27  insurance under this section or section 169.792.  
  1.28     (f) "Peace officer" or "officer" means an employee of a 
  2.1   political subdivision or state law enforcement agency, including 
  2.2   the Minnesota state patrol, who is licensed by the Minnesota 
  2.3   board of peace officer standards and training and is authorized 
  2.4   to make arrests for violations of traffic laws. 
  2.5      (g) "Proof of insurance" means an insurance identification 
  2.6   card, written statement, or insurance policy as defined by 
  2.7   section 65B.14, subdivision 2. 
  2.8      (h) "Vehicle" means a motor vehicle as defined in section 
  2.9   65B.43, subdivision 2, or a motorcycle as defined in section 
  2.10  65B.43, subdivision 13.  
  2.11     (i) "Written statement" means a written statement by a 
  2.12  licensed insurance agent stating the name and address of the 
  2.13  insured, the vehicle identification number of the insured's 
  2.14  vehicle, that a plan of reparation security as required by 
  2.15  section 65B.48 has been provided for the insured's vehicle, and 
  2.16  the dates of the coverage. 
  2.17     (j) The definitions in section 65B.43 apply to sections 
  2.18  169.792 to ~~169.799~~ 169.798. 
  2.19     Sec. 2.  Minnesota Statutes 2002, section 169.796, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 3.  [SAMPLING TO VERIFY INSURANCE COVERAGE.] (a) The 
  2.22  commissioner of public safety must implement a monthly sampling 
  2.23  program to verify insurance coverage.  The sample must annually 
  2.24  include at least two percent of all drivers who own motor 
  2.25  vehicles, as defined in section 168.011, licensed in the state, 
  2.26  one-half of whom during the previous year have been convicted of 
  2.27  at least one vehicle insurance law violation, have had a 
  2.28  driver's license revoked or suspended due to habitual violation 
  2.29  of traffic laws, have had no insurance in effect at the time of 
  2.30  a reportable crash, or have been convicted of an alcohol-related 
  2.31  motor vehicle offense.  No sample may be selected based on race, 
  2.32  religion, physical or mental disability, economic status, or 
  2.33  geographic location.  
  2.34     (b) The commissioner must request each vehicle owner 
  2.35  included in the sample to furnish insurance coverage information 
  2.36  to the commissioner within 30 days.  The request must require 
  3.1   the owner to state whether or not all motor vehicles owned by 
  3.2   that person were insured on the verification date stated in the 
  3.3   commissioner's request.  The request may require, but is not 
  3.4   limited to, a signed statement by the owner that the information 
  3.5   is true and correct, the names and addresses of insurers, policy 
  3.6   numbers, and expiration or renewal dates of insurance coverage. 
  3.7      (c) The commissioner must conduct a verification of the 
  3.8   response by transmitting necessary information to the insurance 
  3.9   companies named in the owner's response.  
  3.10     (d) The insurance companies must electronically notify the 
  3.11  commissioner, within 30 days of the commissioner's request, of 
  3.12  any false statements regarding coverage.  
  3.13     (e) The commissioner must suspend, without preliminary 
  3.14  hearing, the driver's license, if any, of a vehicle owner who 
  3.15  falsely claims coverage, who indicates that coverage was not in 
  3.16  effect at the time specified in the request, or who fails to 
  3.17  respond to the commissioner's request to furnish proof of 
  3.18  insurance.  The commissioner must comply with the notice 
  3.19  requirement of section 171.18, subdivision 2.  
  3.20     (f) Before reinstatement of the registration, there must be 
  3.21  filed with the commissioner of public safety the written 
  3.22  certificate of an insurance carrier authorized to do business in 
  3.23  the state stating that security has been provided as required by 
  3.24  section 65B.48.  The commissioner of public safety may require 
  3.25  the certificate of insurance provided to satisfy this 
  3.26  subdivision to be certified by the insurance carrier for a 
  3.27  period not to exceed one year.  The commissioner of public 
  3.28  safety may also require a certificate of insurance to be filed 
  3.29  with respect to all vehicles required to be insured under 
  3.30  section 65B.48 and owned by any person whose driving privileges 
  3.31  have been suspended as provided in this section before 
  3.32  reinstating the person's driver's license. 
  3.33     Sec. 3.  Minnesota Statutes 2002, section 169.797, 
  3.34  subdivision 4a, is amended to read: 
  3.35     Subd. 4a.  [REGISTRATION REVOCATION AND LICENSE 
  3.36  SUSPENSION.] The commissioner of public safety shall revoke the 
  4.1   registration of any vehicle and ~~may~~ must suspend the driver's 
  4.2   license of any operator, without preliminary hearing upon a 
  4.3   showing by department records, including accident reports 
  4.4   required to be submitted by section 169.09, or other sufficient 
  4.5   evidence that security required by section 65B.48 has not been 
  4.6   provided and maintained.  Before reinstatement of the 
  4.7   registration, there shall be filed with the commissioner of 
  4.8   public safety the written certificate of an insurance carrier 
  4.9   authorized to do business in the state stating that security has 
  4.10  been provided as required by section 65B.48.  The commissioner 
  4.11  of public safety may require the certificate of insurance 
  4.12  provided to satisfy this subdivision to be certified by the 
  4.13  insurance carrier to be noncancelable for a period not to exceed 
  4.14  one year.  The commissioner of public safety may also require a 
  4.15  certificate of insurance to be filed with respect to all 
  4.16  vehicles required to be insured under section 65B.48 and owned 
  4.17  by any person whose driving privileges have been suspended or 
  4.18  revoked as provided in this section before reinstating the 
  4.19  person's driver's license. 
  4.20     Sec. 4.  Minnesota Statutes 2002, section 169.798, 
  4.21  subdivision 1, is amended to read: 
  4.22     Subdivision 1.  [AUTHORITY.] The commissioner of public 
  4.23  safety shall have the power and perform the duties imposed by 
  4.24  sections 65B.41 to 65B.71, this section, and sections 169.797 
  4.25  and ~~169.799~~ 169.798, and may adopt rules to implement and 
  4.26  provide effective administration of the provisions requiring 
  4.27  security and governing termination of security. 
  4.28     Sec. 5.  Minnesota Statutes 2002, section 169.798, is 
  4.29  amended by adding a subdivision to read: 
  4.30     Subd. 4.  [ATTESTATION OF INSURANCE REQUIRED.] Every owner, 
  4.31  when applying for motor vehicle or motorcycle registration, 
  4.32  reregistration, or transfer of ownership, must attest that the 
  4.33  motor vehicle or motorcycle is covered by an insurance policy. 
  4.34     Sec. 6.  Minnesota Statutes 2002, section 171.20, 
  4.35  subdivision 4, is amended to read: 
  4.36     Subd. 4.  [REINSTATEMENT FEE.] (a) Before the license is 
  5.1   reinstated, (1) a person whose driver's license has been 
  5.2   suspended under section 171.16, subdivision 2; 171.18, except 
  5.3   subdivision 1, clause (10); or 171.182, or who has been 
  5.4   disqualified from holding a commercial driver's license under 
  5.5   section 171.165, and (2) a person whose driver's license has 
  5.6   been suspended under section 171.186 and who is not exempt from 
  5.7   such a fee, must pay a fee of $20.  
  5.8      (b) Before the license is reinstated, a person whose 
  5.9   license has been suspended or revoked under sections 169.791 to 
  5.10  169.798 must pay a $30 reinstatement fee. 
  5.11     (c) When fees are collected by a licensing agent appointed 
  5.12  under section 171.061, a handling charge is imposed in the 
  5.13  amount specified under section 171.061, subdivision 4.  The 
  5.14  reinstatement fee and surcharge must be deposited in an approved 
  5.15  state depository as directed under section 171.061, subdivision 
  5.16  4.  
  5.17     (d) A suspension may be rescinded without fee for good 
  5.18  cause. 
  5.19     Sec. 7.  [REPEALER.] 
  5.20     (a) Minnesota Statutes 2002, section 169.792, subdivision 
  5.21  12, is repealed. 
  5.22     (b) Minnesota Statutes 2002, section 169.794, is repealed.  
  5.23     (c) Minnesota Statutes 2002, section 169.799, is repealed. 
  5.24     (d) Minnesota Rules, part 7413.0400, is repealed. 
  5.25     (e) Minnesota Rules, part 7413.0500, is repealed.  
  5.26     Sec. 8.  [EFFECTIVE DATE.] 
  5.27     Sections 1 to 7 are effective January 1, 2004.